Bank of Spain more hopeful about economic growth

The Bank of Spain has revised up its economic growth forecasts for this year and next.

It now sees Spanish gross domestic product growing 1.3 percent in 2014, compared to its previously prediction of 1.2 percent.

Thanks to a quickening of internal demand and business investment in recent weeks, the central bank is now looking for 2.0 percent expansion in 2015.

In its previous economic bulletin, issued in March, the Bank of Spain economists felt that GDP would grow by 1.7 percent next year.

Spain has been in or near recession since a decade-long property bubble burst in 2008.

However unemployment in Spain remains the second highest in Europe, at 25.9 percent, and the Madrid government’s budget deficit is not set to drop to the European Commission’s recommended 3.0 percent of GDP until 2016.